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Net Metering

If you have been looking into purchasing a solar system, you have more than likely come across the term “net metering”.  This billing method plays a large part in the savings that a solar system provides, but what does it mean?  Net metering, or net energy metering, in effect sends excess energy produced by your solar system to the electrical grid that can be used later to offset unmatched needed energy for the rest of your billing cycle.

Net metering is very beneficial to the system owner because a solar systems’ production often varies from the home or business’ instant energy needs.  On overcast days, production will likely not meet daily needs, but on clear days production will likely surpass needs. In addition, one’s energy consumption varies throughout the day and night.  Most typically, people tend to use more energy in the mornings and evenings, and most people are working away from home during the day (pandemic aside), reflecting a lower consumption rate during the mid-day (when production peaks). By sending that excess energy in the electrical grid, the system works to offset your energy bill for that billing cycle. This running tally, “net amount” of energy during the billing cycle, is what you are billed for. If you produce more than you use in a given billing cycle you will receive a credit per kwh towards the fixed monthly rate your utility charges.

Although net metering is not necessarily applicable to every state and utility company, “…34 states, plus the District of Columbia and Puerto Rico, have mandatory net metering rules in place,” (SEIA.org).  Also, the benefits to you as the installation owner are undeniable, as reflected in your offset utility bill for that billing cycle. Not only does net metering have fiscal benefits to the owner, but it also provides other productive outcomes.  It helps the utility companies manage the grid by being aware of the energy demand and trends.  Furthermore, net metering has proven to provide more jobs. According to the Solar Energy Industries Organization, “Net metering increases demand for solar energy, which in turn creates jobs for the installers, electricians, and manufacturers who work in the solar supply chain. Today, the solar industry employs more than 230,000 American workers in large part due to strong state net metering policies which have allowed the solar industry to thrive,” (SEIA.org).

When a system is created effectively for your home and individual energy consumption trends, net metering will prove to be beneficial for you, by providing energy production tailored to save you the most money on your energy-cost needs. Our Endries Solar & Electric team can be counted on to maximize your savings by sizing your system to take full advantage of net metering billing.

The 50 States of Solar: New Wave of States Initiate Net Metering Studies During Q2 2024 | NC Clean Energy Technology Center (ncsu.edu)

https://www.energysage.com/solar/101/net-metering-for-home-solar-panels/

https://www.seia.org/initiatives/net-metering

https://energyeducation.ca/encyclopedia/Electrical_grid